ARA Rental Revenue Forecast Gains Strength

August 13, 2018 10:17 AM Eastern Daylight Time

MOLINE, Ill.--(BUSINESS WIRE)--The American Rental Association (ARA), for the second quarter in a row,
is projecting larger increases in revenue almost across the board for
the equipment and event rental industry than it did in the previous
five-year forecast released in May.

The July 2018 forecast from ARA Rentalytics calls for total U.S. rental
revenue of $53.04 billion in 2018, up 7.6 percent, and then growing 5.8
percent in 2019, 5.9 percent in 2020, 5.1 percent in 2021 and 4.7
percent in 2022 to reach $65.4 billion.

The May forecast called for total U.S. rental revenue of $52.3 billion
in 2018 growing to $64.1 billion in 2022.

“ARA’s second quarter forecast shows continued strong growth in rental
revenues over the forecast period. Growth rates for 2018 and 2019 look
particularly strong in all segments of the equipment and event rental
industry with growth rates forecast at more than double the rate of GDP
[gross domestic product] growth,” says John McClelland, Ph.D., ARA’s
vice president, government affairs, and chief economist.

While the near-term outlook is particularly strong, McClelland said the
out-years of the forecast could be subject to change due to the
potential impact of tariffs on the economy and construction projects.

“Coupled with the increases in equipment prices that are almost
inevitable after the imposition of tariffs on steel and aluminum, the
equipment and event rental industry could face a challenging economic
climate beginning in 2020 and beyond,” McClelland says.

According to ARA Rentalytics, construction and industrial equipment
rentals continues to account for the bulk of revenue in equipment and
event rental and now is expected to reach $37.15 billion in 2018, up 8.3
percent over last year. General tool rental revenue in 2018 is forecast
to be $12.49 billion, up 5.4 percent. Party and event revenue is
expected to reach $3.4 billion in 2018, up 8.8 percent.

ARA also forecasts total investment in equipment by rental companies to
reach $13.9 billion in 2018, up 7.8 percent over 2017.

In Canada, the forecast is for $5.4 billion in revenue in 2018, up 4.4
percent, with 4.8 percent growth in 2019, 4.7 percent in 2020, 3.8
percent in 2021 and 2.7 percent in 2022 to reach $6.159 billion.

About ARA: (www.ARArental.org)
The American Rental Association, Moline, Ill., is an international
trade association for owners of equipment rental businesses and the
manufacturers and suppliers of construction/industrial, general tool and
party/event rental equipment. ARA members, which include more than
10,000 rental businesses and more than 1,000 manufacturers and
suppliers, are located in every U.S. state, every Canadian province and
more than 30 countries worldwide. Founded in 1955, ARA is the source for
information, advocacy, education, networking and marketplace
opportunities for the equipment and event rental industry throughout the
world.